Using Average (Actual) Cost for Physical Inventory Adjustments

By default, Sage 300 uses an item's standard cost to calculate inventory adjustments for standard cost items in the Generate Inventory Worksheet screen.

If you need to adjust inventory using the average (actual) cost, rather than the standard cost, when generating inventory worksheets, you must edit the IC.INI file before creating inventory worksheets using the Generate Inventory Worksheet screen.

Warning! If you are not sure whether to use average or standard cost for adjustments, do not change the default method. Consult your accountant.

To change the method for costing physical inventory adjustments:

  1. In the Inventory Control program folder, open the IC.INI file.
  2. In the Physical Inventory section, specify one of the following values for the UseActualCostForPI switch:
    • No. Specify this to use standard cost to calculate inventory adjustments.
    • Yes. Specify this to use average (actual) cost to calculate inventory adjustments.

    The next time a user adjusts inventory using the Generate Inventory Worksheet screen, the adjustments will be based on the specified cost.